Extra! Extra! Read all about it!! Good news for the housing market!! The first time homebuyer tax credit has been extended and broadened. Signed into law on November 6, 2009 the bill contains the following provisions:
- If you are a first time home buyer - meaning you have not had interest (ownership) in a principal residence for the last 36 months, you may be eligible to receive a tax credit of up to $8,000. The amount is $8K or 10% of the purchase price of the home, whichever is the smaller amount, provided you fall within the income parameters which have been increased to $125K for single individuals and $225K for married people.
- You must have a contract on the property you wish to buy by April 30, 2010, at which point you have an additional 60 days to close on that property.
Plus, if you currently own your home YOU may be eligible for the "existing homeowner" tax credit! If:
- You have used the home being sold as a principle residence consecutively for 5 of the last 8 years.
- The home you are buying is less than $800K.
- The income limits are the same as those applying for the first time homebuyer credit.
- The home is under contract by April 30, 2010.
For a pdf of frequently asked questions and their answers email me at tm.mcclaren@gmail.com. Always consult with a tax professional before making your purchase.
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